India’s Telecom Minister, Andimuthu Raja corroborated that the government has decided to auction 3G and broadband wireless access (BWA) spectrum in January, 2009. According to the minister, spectrum will be allotted through simultaneous ascending e-auction. On an average for 3G, 5 blocks are to be auctioned. The reserve price for each block of pan India spectrum is Rs 2020 crore ($408 million). In broadband wireless access (BWA), auction will take place in a similar manner. The reserve price for one block is Rs 1010 crore ($204 million) and Four blocks are to be auctioned. The sale of each BWA spectrum will bring Wi-Max services to rural areas and will help in broadband launch.

Raja said, “I have allotted 3G and Wi-Max Spectrum to both BSNL and MTNL in the month of September 2008 with a view to ensure early roll out of 3G and Wi-Max services in the country. MTNL will be launching services in December 2008 in Delhi and BSNL in January 2009 in Chennai. They will pay the same price for the spectrum as discovered through the auction”.

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